Current Yield

Don’t Write Off High-Yield Munis

They may be controversial, but their tax benefits still make them attractive.

Another April 15 has come and gone, and minimizing the taxes you’ll owe next year may be top of mind. For most investors, that means checking out municipal bonds. And if you want more income, high-yield munis may look tempting.

The average 12-month yield for Morningstar’s high-yield muni category is 4.34%, compared with 2.53% for intermediate municipal bonds. A 4% or 5% payout is impressive enough when the 10-year Treasury yields...